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Is Comstock Holding Companies, Inc. (NASDAQ:CHCI) Excessively Paying Its CEO?

Simply Wall St

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Christopher Clemente became the CEO of Comstock Holding Companies, Inc. (NASDAQ:CHCI) in 1992. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Comstock Holding Companies

How Does Christopher Clemente's Compensation Compare With Similar Sized Companies?

Our data indicates that Comstock Holding Companies, Inc. is worth US$21m, and total annual CEO compensation is US$800k. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$400k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$471k.

It would therefore appear that Comstock Holding Companies, Inc. pays Christopher Clemente more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Comstock Holding Companies has changed over time.

NasdaqCM:CHCI CEO Compensation, July 15th 2019

Is Comstock Holding Companies, Inc. Growing?

Over the last three years Comstock Holding Companies, Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). In the last year, its revenue is up 35%.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Comstock Holding Companies, Inc. Been A Good Investment?

I think that the total shareholder return of 52%, over three years, would leave most Comstock Holding Companies, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We examined the amount Comstock Holding Companies, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Comstock Holding Companies shares (free trial).

If you want to buy a stock that is better than Comstock Holding Companies, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.